Dataset Information

Benefits and costs of oil palm expansion in Central Kalimantan, Indonesia, under different policy scenarios.

ABSTRACT: Deforestation and oil palm expansion in Central Kalimantan province are among the highest in Indonesia. This study examines the physical and monetary impacts of oil palm expansion in Central Kalimantan up to 2025 under three policy scenarios. Our modelling approach combines a spatial logistic regression model with a set of rules governing land use change as a function of the policy scenario. Our physical and monetary analyses include palm oil expansion and five other ecosystem services: timber, rattan, paddy rice, carbon sequestration, and orangutan habitat (the last service is analysed in physical units only). In monetary terms, our analysis comprises the contribution of land and ecosystems to economic production, as measured according to the valuation approach of the System of National Accounts. We focus our analysis on government-owned land which covers around 97 % of the province, where the main policy issues are. We show that, in the business-as-usual scenario, the societal costs of carbon emissions and the loss of other ecosystem services far exceed the benefits from increased oil palm production. This is, in particular, related to the conversion of peatlands. We also show that, for Central Kalimantan, the moratorium scenario, which is modelled based on the moratorium currently in place in Indonesia, generates important economic benefits compared to the business-as-usual scenario. In the moratorium scenario, however, there is still conversion of forest to plantation and associated loss of ecosystem services. We developed an alternative, sustainable production scenario based on an ecosystem services approach and show that this policy scenario leads to higher net social benefits including some more space for oil palm expansion.

SUBMITTER: Sumarga E

PROVIDER: S-EPMC4927089 | biostudies-other | 2016

REPOSITORIES: biostudies-other

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Benefits and costs of oil palm expansion in Central Kalimantan, Indonesia, under different policy scenarios.

Sumarga Elham E Hein Lars L

Regional environmental change 20150528

Deforestation and oil palm expansion in Central Kalimantan province are among the highest in Indonesia. This study examines the physical and monetary impacts of oil palm expansion in Central Kalimantan up to 2025 under three policy scenarios. Our modelling approach combines a spatial logistic regression model with a set of rules governing land use change as a function of the policy scenario. Our physical and monetary analyses include palm oil expansion and five other ecosystem services: timber, ...[more]

PMID: 27429582

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Project description:Agricultural expansion is one of the leading causes of deforestation in the tropics and in Southeast Asia it is predominantly driven by large-scale production for international trade. Peninsular Malaysia has a long history of plantation agriculture and has been a predominantly resource-based economy where expanding plantations like those of oil palm continue to replace natural forests. Habitat loss from deforestation and expanding plantations threatens Malaysian biodiversity. Expanding industrial plantations have also been responsible for drainage and conversions of peatland forests resulting in release of large amounts of carbon dioxide. The demand for palm oil is expected to increase further and result in greater pressures on tropical forests. Given Malaysia's high biophysical suitability for oil palm cultivation, it is important to understand patterns of oil palm expansion to better predict forest areas that are vulnerable to future expansion. We study natural forest conversion to industrial oil palm in Peninsular Malaysia between 1988 and 2012 to identify determinants of recent oil palm expansion using logistic regression and hierarchical partitioning. Using maps of recent conversions and remaining forests, we characterize agro-environmental suitability and accessibility for the past and future conversions. We find that accessibility to previously existing plantations is the strongest determinant of oil palm expansion and is significant throughout the study period. Almost all (> 99%) of the forest loss between 1988 and 2012 that has been converted to industrial oil palm plantations is within 1 km from oil palm plantations that have been established earlier. Although most forest conversions to industrial oil palm have been in areas of high biophysical suitability, there has been an increase in converted area in regions with low oil palm suitability since 2006. We find that reduced suitability does not necessarily restrict conversions to industrial oil palm in the region; however, lack of access to established plantations does.

Dataset Information

Benefits and costs of oil palm expansion in Central Kalimantan, Indonesia, under different policy scenarios.

Publications

Benefits and costs of oil palm expansion in Central Kalimantan, Indonesia, under different policy scenarios.

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